Yorkville Asset Management participated in CareRx Corporation's (TSE:CRRX) C$63.25 million equity financing for its previously announced acquisition of Medical Pharmacies Group’s long-term care pharmacy division.
CareRx is one of Canada's leading providers of pharmacy services to seniors living and other congregate care communities.
The firm announced in April its plans to acquire the Long-Term Care Pharmacy Division of Medical Pharmacies Group, which is comprised of 18 fulfillment centres that serve around 36,000 residents of long-term care, assisted living and other congregate care settings across Ontario, Alberta and British Columbia.
READ: Yorkville Asset Management funds $32M Southbridge Health Care debt facility to kickstart redevelopment of its long-term care facilities in Ontario
Gross proceeds of the equity financing will be used to partially fund the $70 million cash portion of the purchase price.
Yorkville Asset Management purchased nearly 2.3 million subscription receipts at the issue price for gross proceeds of approximately $11.5 million. The gross proceeds reflect the full exercise of the upsize options granted to each of the underwriters and Yorkville.
The equity financings were comprised of an underwritten private placement co-led by Eight Capital and Cormark Securities Inc, along with a syndicate of underwriters including Desjardins Securities Inc, Stifel Nicolaus Canada Inc, Beacon Securities Limited, Canaccord Genuity Corp, iA Private Wealth Inc, Echelon Wealth Partners and Leede Jones Gable Inc, of more than 10.2 million subscription receipts at a price of $5.05 for gross proceeds of approximately $51.75 million.
Proceeds from the financing were placed into escrow and will be released upon the satisfaction of certain escrow release conditions, including CareRx obtaining shareholder approval for the financings and the completion of the acquisition. Once those conditions are met, each subscription receipt will be exchanged for one CareRx share, subject to adjustments if the escrow conditions are not met by the prescribed dates.
The acquisition is expected to close in the third quarter of 2021.
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